Patience is out of fashion in the modern world. It tends to suggest passivity, tolerance and even resignation.
At Continuum, we believe that patience is actually vital for effective investment.
It’s easy to think that making money in the stock market means being active, spotting stock with potential, buying it just before the price shoots up, and selling it again before it falls back to earth. It would be an exciting way to make money – if it worked.
The fact is not even professional investors know what the price of a stock will be tomorrow. However, with a little patience, and some help from Continuum, there is a way for the stock market to potentially grow your wealth.
Trying to beat the market costs you money
At Continuum we keep a very close eye on the markets. But – although we also keep a close eye on our clients and their investments – don’t expect us to be calling every day with share tips. For most people, active investment is a costly mistake.
It’s natural to want to sell when the market is going down and buy when it’s on the rise. But is that stock bargain actually a sign of a business in trouble? Is a rising price a bubble about to burst?
Trying to time the market through its ups and downs actually reduces returns – especially when every trade costs you a fee from a stockbroker or online service.
Buying cheap and selling dear sounds good – but in practice, unless you are patient you are just as likely to buy stocks that fall in value, and sell before they recover.
Patience builds wealth
Your investment needs to be based on sound foundations. Share prices may go up and down, but with the right spread of investments, diversified across several sectors and several markets you can ride out bumps along the way.
But you also need expert help from Continuum to assemble the investment portfolio that is right for you. We can help you arrange an investment plan that is diversified, to avoid overexposure to particular sectors or regions, and accurately reflects your attitude to risk. We will help you monitor it over the years, and make sure it stays on track for your wealth creation targets.
Above all, you need patience. Your personal investment plan should be for the long term. Investing regularly and staying invested can help smooth out market highs and lows and it is the time your money has to grow in the market that builds wealth
We can even show you how a patient approach to funding your investment – a strategy known as pound cost averaging – could help you grow your wealth, even if you have no lump sum to invest.
How else can we help? You can read the latest financial news with our weekly education mailer, and keep an eye on your portfolio with our Personal Finance Portal – a bespoke portal giving you access to view all of your finances held securely in one place.
But our greatest strength comes from the skills of our team – and the fact that we provide a personal service. A Continuum financial adviser is ready to sit down with you and develop a strategy that could help you build and preserve your wealth, simply by taking a patient approach.
So, when should you be an impatient investor? There is an easy answer. The longer your money has in the market, the more potential it has to grow. So, there is no reason to wait for what looks like an opportunity. The time to start investing is now – and a call to Continuum could be the best way to get started.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action.
The value of investments can fall as well as rise and you may get back less than you invested.
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